GlobeNewswire Inc | May 12, 2021 09:30PM EDT

May 13, 2021

NEW YORK, May 12, 2021 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal second quarter of 2021.

Second Quarter 2021 Highlights

-- Total investment income of $6.5 million; net investment income of $3.7 million -- $59.1 million in cash on March 31, 2021 -- Net asset value of $151.2 million, or $55.91 per share as of March 31, 2021 vs. $55.30 per share as of September 30, 2020

The quarter ended March 31, 2021 represented the first quarter of operations under the Companys new internalized management structure.

David Lorber, Chief Executive Officer of the Company, stated: We are pleased with the smooth transition to an internally-managed company and with our performance during the quarter. We are generally encouraged by potential opportunities to enhance value within the legacy portfolio and deploy capital, as we look to achieve our investment objective of generating current income and capital appreciation. In addition, we continue to realize efficiencies in operating under our internalized management structure.

On January 11, 2021, the Company announced that the Board of Directors approved a share repurchase program authorizing up to $15 million in share repurchases. Under the share repurchase program, the Company is authorized to repurchase from time to time its common stock in open market or other transactions, subject to applicable regulatory requirements. Under this program, 19,773 shares were repurchased through March 31, 2021. In aggregate through May 11, 2021 43,988 shares have been repurchased at an average price of $32.52/share.

Second Quarter 2021 Financial Results

For the quarter ended March 31, 2021, investment income totaled $6.4 million, of which $6.1 million was attributable to portfolio interest and dividend income, $0.2 million was attributable to fee income, and $0.1 million was attributable to other income.

For the quarter ended March 31, 2020, investment income totaled $5.3 million, of which $5.2 million was attributable to portfolio interest and dividend income, and $0.1 million to fee income.

For the quarter ended March 31, 2021, total net expenses were $2.8 million and for the quarter ended March 31, 2020, total net expenses were $9.5 million.

For the quarter ended March 31, 2021, the Company recorded a net realized gain of $0.2 million and net unrealized appreciation of $3.9 million. For the quarter ended March 31, 2020, the Company recorded a net realized loss of $(0.1) million and net unrealized depreciation of $(73.6) million.

Portfolio and Investment Activities

As of March 31, 2021, the fair value of the Company's investment portfolio totaled $168.2 million and consisted of 38 portfolio companies.

As of March 31, 2021, the Company had 10 portfolio company investments on non-accrual status with a fair market value of $16.7 million.

Liquidity and Capital Resources

At March 31, 2021, the Company had $59.1 million in cash and $77.3 million outstanding in aggregate principal amount of 6.125% unsecured notes due 2023.

ABOUT PHENIXFIN CORPORATION

PhenixFIN Corporation is a non-diversified, internally managed closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. We completed our initial public offering and commenced operations on January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Effective January 1, 2021, the Company operates under an internalized management structure.

SAFE HARBOR STATEMENT AND OTHER DISCLOSURES

This press release contains forward-looking statements. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including among other things, PhenixFINs ability to deliver value to shareholders, implement its investment objective, capitalize on investment opportunities and continue to realize efficiencies, and other factors that are enumerated in the Companys periodic filings with the Securities and Exchange Commission. PhenixFIN Corporation disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.

The press release contains unaudited financial results. For ease of review, we have excluded the word "approximately" when rounding the results. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of PhenixFIN Corporations common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective.

ForPhenixFINinvestor relations, please call 212-859-0390. For media inquiries, please contactinfo@phenixfc.com.

PHENIXFIN CORPORATION Consolidated Statements of Assets and Liabilities

March 31, September30, 2021 2020 (Unaudited)Assets: Investments at fair value Non-controlled, non-affiliatedinvestments (amortized cost of $ 93,283,110 $ 114,321,948 $95,301,443 and $117,360,954,respectively)Affiliated investments (amortizedcost of $79,845,752 and 68,233,836 84,873,023 $92,898,755, respectively)Controlled investments (amortizedcost of $38,487,321 and 6,727,597 47,548,578 $117,874,821, respectively)Total Investments at fair value 168,244,543 246,743,549 Cash and cash equivalents 59,092,731 56,522,148 Receivables: Interest receivable 299,655 624,524 Fees receivable 106,528 119,028 Other receivable 398,551 - Prepaid share repurchases 164,258 - Other assets 1,210,724 2,093,559 Total Assets $ 229,516,990 $ 306,102,808 Liabilities: Notes payable (net of debt issuancecosts of $551,142 and $905,624, $ 77,295,658 $ 150,960,662 respectively)Interest and fees payable - 801,805 Due to affiliates - 53,083 Management and incentive fees - 1,392,022 payableAdministrator expenses payable 94,958 156,965 Accounts payable and accrued 918,279 2,108,225 expensesDeferred revenue 30,970 10,529 Total Liabilities 78,339,865 155,483,291 Commitments and Contingencies Net Assets: Common Shares, $0.001 par value;5,000,000 shares authorized;2,703,936 and 2,723,709 common 2,704 2,724 shares issued and outstanding,respectivelyCapital in excess of par value 671,589,690 672,381,617 Total distributable earnings/(loss) (520,415,269 ) (521,764,824 )Total Net Assets $ 151,177,125 $ 150,619,517 Total Liabilities and Net Assets $ 229,516,990 $ 306,102,808 Net Asset Value Per Common Share $ 55.91 $ 55.30

PHENIXFIN CORPORATIONConsolidated Statements of Operations(Unaudited)

For the Three For the Six MonthsEnded Months Ended March 31 March 31 2021 2020 2021 2020 Interest Income:Interest from investmentsNon-controlled,non-affiliated investments:Cash $ 1,534,904 2,320,453 $ 3,206,717 5,538,162 Payment in-kind - 128,309 170,029 327,321 Affiliated investments:Cash 196,328 190,193 548,619 399,441 Payment in-kind - 706,789 - 1,654,262 Controlled investments:Cash (1,190 ) 1,297 - 84,505 Payment in-kind - 5,385 - 500,767 Total interest 1,730,042 3,352,426 3,925,365 8,504,458 incomeDividend income 4,408,234 1,662,500 14,671,735 3,500,000 Interest fromcash and cash 506 154,290 1,446 372,428 equivalentsFee income 237,416 131,992 578,880 415,532 Other income 78,204 - 78,204 - TotalInvestment 6,454,402 5,301,208 19,255,630 12,792,418 Income Expenses: Base management - 1,641,271 1,146,403 3,649,505 feesInterest andfinancing 1,260,054 4,432,118 3,277,695 9,576,047 expensesGeneral andadministrative 104,440 2,083,397 466,049 2,600,239 expensesSalaries and 332,317 - 332,317 - BenefitsAdministrator (44,618 ) 576,362 439,794 1,127,884 expensesInsurance 474,468 356,580 959,480 654,578 expensesDirectors fees 220,500 296,500 696,217 612,500 Professional 420,220 130,630 (79,077 ) (4,285,445 )fees, netTotal expensesnet of expensesupportreimbursement 2,767,381 9,516,858 7,238,878 13,935,308 and managementand incentivefee waiversNet Investment 3,687,021 (4,215,650 ) 12,016,752 (1,142,890 )Income Realized andunrealized gains (losses)on investmentsNet realized gains (losses):Non-controlled,non-affiliated 160,926 (100,115 ) 4,054,648 (157,914 )investmentsAffiliated - - (10,452,928 ) - investmentsControlled - - (40,147,570 ) (1,686,837 )investmentsTotal netrealized gains 160,926 (100,115 ) (46,545,850 ) (1,844,751 )(losses)Net change inunrealized gains (losses):Non-controlled,non-affiliated 5,077,737 (19,549,944 ) 1,020,673 (15,802,570 )investmentsAffiliated (1,467,862 ) (15,019,332 ) (3,586,184 ) (5,578,733 )investmentsControlled 329,584 (38,994,357 ) 38,566,519 (48,451,471 )investmentsTotal netchange in 3,939,459 (73,563,633 ) 36,001,008 (69,832,774 )unrealizedgains (losses)Change inprovision fordeferred taxeson unrealized - (85,664 ) - (85,664 )(appreciation)/depreciation oninvestmentsLoss onextinguishment - (895,033 ) (122,355 ) (1,784,183 )of debtTotal realizedand unrealized 4,100,385 (74,644,445 ) (10,667,197 ) (73,547,372 )gains (losses) Net Increase(Decrease) inNet Assets $ 7,787,406 $ (78,860,095 ) $ 1,349,555 $ (74,690,262 )Resulting fromOperations WeightedAverage Basicand diluted $ 2.87 $ (28.95 ) $ 0.50 $ (27.42 )earnings percommon shareWeightedAverage Basicand diluted netinvestment $ 1.36 $ (1.55 ) $ 4.42 $ (0.42 )income (loss)per commonshareWeightedAverage CommonShares 2,716,627 2,723,711 ^ 2,720,226 2,723,711 ^Outstanding - (1) (1)Basic andDiluted

Basic and diluted shares has been adjusted for 2020 to reflect the(1) one-for-twenty reverse stock split effected on July 24, 2020 on a retroactive basis.